Weekly Reports | 11:00 AM
Broker Rating Changes (Post Thursday Last Week)
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CAPRICORN METALS LIMITED ((CMM)) Upgrade to Buy from Overweight by Jarden.B/H/S: 0/0/0
Jarden raises its target for Capricorn Metals to $6.28 from $5.80 and upgrades to Buy from Overweight.
The broker sees a clearer pathway to material, low-risk but strong margin growth, and believes the expansion will proceed at Karlawinda.
A supportive macroeconomic backdrop for the gold price further strengthens the ananlyst's view.
GOLD ROAD RESOURCES LIMITED ((GOR)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades Gold Road Resources to Buy from Hold and raises the target price to $2.10 due to what is viewed as the "strategic" value of Gruyere and circa 17.3% stake in Dug Technology ((DUG)).
The company reported lower-than-expected 2Q24 gold production and management also decreased the FY25 guidance, the broker highlights.
Problems incurred from wet weather in the March quarter continued to impact into the June quarter and the analyst revises EPS estimates by -56.2% for FY24 and -4.25% for FY25.
Buy rated. $2.10 target.
NICKEL INDUSTRIES LIMITED ((NIC)) Buy by Canaccord Genuity.B/H/S: 0/0/0
Nickel Industries reported 4Q24 results which met the Canaccord Genuity's analyst's expectations but came in better than the market forecasts.
Higher than average rainfall impacted on RKEF resulting in the company using lower grade stockpiles, creating higher than anticipated cash costs.
Cash depletion was also higher than the broker expected.
Buy rating with 95c target maintained.
ORORA LIMITED ((ORA)) Buy by Jarden.B/H/S: 0/0/0
Jarden is looking for any FY25 guidance changes for Saverglass and North America in the upcoming Orora FY24 results on August 15.
The Buy rating is retained with a change in the target price to $2.50 from $2.55.
POINTSBET HOLDINGS LIMITED ((PBH)) Upgrade to Buy from Overweight by Jarden.B/H/S: 0/0/0
Following 4Q results, Jarden upgrades its rating for PointsBet Holdings to Buy from Overweight on signs of stronger profitability going
forward. PointsBet remains the broker's preferred wagering exposure under coverage on the ASX.
Momentum continues in Australia, note the analysts, while in Canada an impressive net win growth in sports betting was offset by lower-than-expected iGaming net win growth.
The 85c target price is maintained after the broker's earnings forecast downgrades are matched by the positive impact of a valuation roll-forward.
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EMECO HOLDINGS LIMITED ((EHL)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Jarden downgrades Emeco Holdings to Overweight from Buy ahead of its FY24 result in response to the recent share price rally.
The broker says all eyes will be peeled to evidence of sustainability of strong pricing, following a robust earnings performance, and expects prudent capital expenditure guidance.
While all looks rosy, the broker remains cautious on Pit'n'Portal for now.
Target price falls to 90c from 95c.
LIFESTYLE COMMUNITIES LIMITED ((LIC)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Reacting to events several weeks ago, Jarden lowers its target for Lifestyle Communities to $11.70 from $15.00 and downgrades to Overweight from Buy.
The analysts anticipate near-term sales and settlements will remain under pressure until the courts offer a view on the current contract structure, which has attracted negative media coverage.
The broker feels share price weakness is overdone and still sees attractive medium-term growth from underlying demand plus a growing pipeline.
MACMAHON HOLDINGS LIMITED ((MAH)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Jarden downgrades Macmahon to Overweight from Buy following a 45% rally for the shares in the past year.
The broker remains upbeat for FY25 expecting it to be a "transformative year". Jarden observes an easing WA labour market and appreciates the low capital intensity of recent transaction, which reduces stranded-asset risk
EPS forecasts are steady for FY25; rise 3% for FY25; and 3% for FY26. Target price rises to 28c from 26c.
NRW HOLDINGS LIMITED ((NWH)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Jarden downgrades NRW Holdings to Overweight from Buy given the company's recent share price run. Target price eases to $3.20 from $3.25.
Heading into the company's FY24 result, the broker expects an in-line result given it has largely been pre-guided.
Hence, eyes will turn to FY25 guidance - the broker perceives the risk to be to the upside.
SITEMINDER LIMITED ((SDR)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
In the wake of 4Q results for SiteMinder, Jarden lowers its target to $5.85 from $6.02 and downgrades to Overweight from Buy. It's thought the market will require evidence of new product traction before rewarding investments in growth.
Regardless, the broker believes it is a strategically sound decision by management to reinvest free cash flow (FCF) in revenue growth, having attained free cash flow breakeven in Q4, while also maintaining a reasonable revenue growth rate.
Management reiterated its focus on achieving the 30% organic revenue growth target in the medium-term, which implies to the analysts increased opex investment.
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